Given:
Principal amount = 50000
Time = 3 years
Rate = 5% compounded semi-annually
The future value is calculated as,
[tex]\begin{gathered} A=P(1+\frac{r}{n})^{nt} \\ P=50000,r=\frac{5}{100},n=2,t=3 \\ A=50000(1+\frac{5}{100\times2})^{2\times3} \\ A=50000(1.025)^6 \\ A=57984.67 \end{gathered}[/tex]The interest is calculated as,
[tex]\begin{gathered} A=P+I \\ 57984.67=50000+I \\ I=7984.67 \end{gathered}[/tex]Answer:
The future value is 57984.67, and the interest of this amount is 7984.67.
